Call us: 07789073800

Full VAT assistance

Choosing the right VAT scheme can make a huge difference for your business. There are number of factors that need to be considered, such as products or services being supplied, the nature of business and the revenue that can all affect the right choice of VAT scheme.

As a VAT specialist we can give you full VAT assistance to ensure that you chose the right VAT scheme for your business and you stay on top of all the ever changing VAT laws and regulations.

Choice of VAT scheme.

As a VAT specialist we can give you full VAT assistance to ensure that you chose the right VAT scheme for your business and you stay on top of all the ever changing VAT laws and regulations.

VAT Scheme with a Flat Rate

The flat rate VAT programme is intended to assist small businesses in reducing the amount of time they spend on VAT accounting. The flat rate structure eliminates the need to compute VAT on each and every transaction. Instead, you pay a set proportion of your revenue as VAT.

The percentage is lower than the regular VAT rate since it accounts for the fact that you do not reclaim VAT on your purchases. There are several flat rate percentages to choose from, and the one you pick is determined on your trade industry.

Although the flat rate programme might simplify paperwork, there is one disadvantage: you cannot refund VAT on purchases. If you purchase a large number of products and services from VAT-registered businesses, you may wind up paying more VAT. Furthermore, if you make a lot of zero-rated or exempt sales, you may wind up paying more VAT since you will still be required to pay the flat rate % on your turnover for such sales, even though you are not charging VAT on them.

VAT accounting conventions

Standard VAT accounting allows you to recover any VAT you may have paid on purchases. You will pay or refund the difference between the VAT you charged your clients and the VAT you had to pay on your purchases.

The standard VAT accounting technique uses the accrual basis of accounting, which means that your VAT calculations will be based on the date your invoice was raised rather than the day it was paid. This might have a negative cashflow impact on your business since you must pay VAT to HMRC for services or items supplied for which you have not yet received payment.

On the other hand, if you have not paid for the items yet, you can claim the VAT on the invoice received, which will have a beneficial influence on your cashflow.

Accounting for VAT in Cash

Cash accounting, as opposed to regular VAT accounting, allows you to compute on real VAT money paid or received rather than invoice basis. Cash accounting may help your cash flow, particularly if your clients are slow to pay. It is much more beneficial if you have outstanding bills. If you use the cash accounting method, you do not have to pay VAT if your customer does not pay you.

Accountants who get things done